Micro Design Group Ltd & Anor v BDW Trading Ltd [2008] EWCA Civ 448 (21 April 2008)
The deed of overage, properly construed, only requires further payment if improved planning permission is obtained by the buyer. The contractual mechanism and commercial sense support this construction, and there is no provision for payment if the seller obtains planning permission after sale.
- Citation
- [2008] EWCA Civ 448
- Parties
- Appellant: Micro Design Group Ltd & Another; Respondent: BDW Trading Ltd
- Jurisdiction
- England and Wales
- Judgment Date
- 21 April 2008
- Procedural Posture
- Civil Appeal / Appeal From Preliminary Issue Determination in Chancery Division
- Outcome
- Appeal allowed
- Legal Topics
- Overage Agreements, Construction of Commercial Contracts, Planning Permission, Trigger Events in Contracts
Case Brief
Summary, issues, holding and outcome
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Parties
Micro Design Group Ltd & Another
Appellant
BDW Trading Ltd
Respondent
Procedural Posture
Civil Appeal / Appeal From Preliminary Issue Determination in Chancery Division
Legal Issues
- 1 Whether the deed of overage requires further payment when improved planning permission is obtained by the seller rather than the buyer
Ratio Decidendi
The deed of overage, properly construed, only requires further payment if improved planning permission is obtained by the buyer. The contractual mechanism and commercial sense support this construction, and there is no provision for payment if the seller obtains planning permission after sale.
Court Disposition
Appeal allowed
Orders
- Preliminary issue answered in favour of the buyer (appellant)
- No payment due to seller under the overage deed on the facts as found
Full Case Text
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